BERLIN--A half-million East Germans thronged the streets of Leipzig in a hard, cold rain last night to demand free elections and unlimited freedom to travel abroad.

More than 135,000 people rallied in other cities, including Schwerin, Halle, Cottbus, Dresden and Karl-Marx-Stadt, the official news agency ADN reported.

While East Germans at home protested, mass flight continued. ADN said 23,200 citizens had gone to West Germany since the suspension of exit rules Saturday.

Lutheran Church sources said some marchers in Leipzig shouted, "The Wall must go!"--demanding demolition of the Berlin Wall, symbol of East German repression for three decades.

ADN said banners demanding "Free elections" and "Travel law without restrictions" waved above the crowd, and others challenged Communist Party supremacy.

It said "several hundred thousand" people took part in the biggest rally so far in Leipzig, where some of the largest protests of the pro-democracy campaign have been held.

Michael Turek, a Lutheran pastor in the southern industrial city of 650,000, said by telephone about 500,000 people marched. A rally Saturday in East Berlin, where the crowd was estimated at one million, was the largest protest in the communist nation's 40-year history.

Members of New Forum, the largest pro-reform group, addressed the crowd in Leipzig, ADN said.

Dresden's march was authorized by authorities and led by Mayor Wolfgang Berghofer and the reformminded local party chief, Hans Modrow. ADN said it was the first officially approved demonstration in the city.

Earlier yesterday, the government published a new draft law that is expected to take effect before Christmas and will permit travel abroad for up to 30 days a year.

Flight through Czechoslovakia continued and people who stayed behind said they were unimpressed by reforms introduced by Egon Krenz, the president and Communist Party chief who last month replaced his hard-line mentor, Erich Honecker.

Church sources said some marchers in Leipzigshouted, "Egon, who elected you?"

This year about 175,000 East Germans--more than1 percent of the population--have moved to WestGermany by emigrating legally, escaping or failingto return from approved trips abroad. West Germanygives them automatic citizenship and help instarting over.

Although the new law would allow travel abroad,East Germans pointed out it retains old provisionsgiving authorities the right to refuse passportsfor vague reasons.

It also does not address the problem offinancing such travel. The East German mark is notconvertible and lack of foreign currency couldmake a legal trip impossible.